RATE Group | Bitcoin, Gold Spike as Fed Unveils Unlimited Coronavirus Stimulus Package
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Bitcoin, Gold Spike as Fed Unveils Unlimited Coronavirus Stimulus Package

24 Mar Bitcoin, Gold Spike as Fed Unveils Unlimited Coronavirus Stimulus Package

Posted at 08:54h in Bitcoin News by

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Bitcoin’s (BTC) price shot up along with gold and stock futures after the U.S. Federal Reserve announced a quantitative easing package with no upper limit to support the economy amid the coronavirus crisis.

Immediately after the 12:00 UTC announcement, bitcoin jumped from $5,860 to $6,628 in an hour, according to CoinDesk’s Bitcoin Price Index. Gold, a classic safe-haven asset, rose from $1,494 to $1,524 over the same time frame.

The Fed’s announcment indicates it is taking stronger actions, including open-ended asset purchases, to support the flow of credit to households and businesses.

“The Federal Reserve will continue to purchase Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions,” the central bank said.

Essentially, the Fed now stands ready to expand its bond purchases as required. The central bank’s balance sheet hit a record $4.7…

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